Our Atlanta, Georgia, loan negotiation lawyers strongly advise you hire experienced Georgia mortgage attorney if you are engaging in a short sale or a deed in lieu foreclosure to mitigate the losses incurred by foreclosure on your home. Remember, the banks have attorneys working hard for them to ensure that the bank losses as little money as possible.
A short sale occurs when the sales proceeds are less that the balance owed on the mortgage. The bank or mortgage lender agrees to accept the short sale and incur a smaller loss rather than waiting for a foreclosure. Sometimes the bank will forgive the remaining loan balance, but this needs to be negotiated and properly documented. Otherwise, the bank may initiate litigation against the homeowner to recover the remaining unpaid loan balance plus costs and attorney’s fees.
A deed in lieu of foreclosure provides another alternative to foreclosure. With a deed in lieu of foreclosure, you give your home to the lender in exchange for the lender agreeing to accept the loan without a foreclosure sale. The lender also should promises not to initiate foreclosure proceedings. In many cases, it is possible to have the lender agree in writing to forgive any deficiency that remains after the house is sold. Forgiveness of any deficiency needs to be negotiated and properly documented much as it would in a short sale.
Short sales and deeds in lieu of foreclosure are considered better for homeowners than a foreclosure. The main reason is that they have less of an adverse affect on a person’s credit report and can dispense with forgiveness of debt. However, they have many pitfalls. As such, it is very important to be represented by counsel when negotiating a short sale or deed in lieu of foreclosure.
Our firm represents homeowners in mitigating their losses incurred when they lose a home to foreclosure. We also ensure you are protected from additional action by the mortgage company in the future. We welcome the opportunity to be of service to you. Please feel free to call our Firm at (404) 467-8611 or toll free at to discuss your options. You can also send us a message through our confidential Web Site form. The Libby Law Firm is conveniently located in the Buckhead section of Atlanta, Georgia near the intersection of Piedmont and Roswell Roads.